U.S. Department of Defense Shipment (CBP Shipment Type)

This article is part of the Shipment Release Types Guide

A U.S. Department of Defense (DOD) Shipment is a shipment of goods belonging to, or destined to, the United States Department of Defense that is being transported by a commercial carrier. DOD shipments may receive special processing at the border when clearing through CBP and are not entered from the regular list of Shipment Types in BorderConnect.

To qualify as a Department of Defense shipment, the goods must be accompanied by the appropriate CBP or government paperwork. Depending on the shipment, this may include documentation or certification under 19 CFR 10.102 or 19 CFR 10.103. For commercial shipments claiming duty-free treatment under HTSUS 9808.00.30, CBP requires the duty-free certificate for the duty-free status and liquidation of the entry.^[1]

Department of Defense Shipments and ACE eManifest

Department of Defense shipments are not entered in BorderConnect as a standard ACE shipment release type. If the carrier has other shipments aboard, the carrier should report all other freight on the ACE eManifest and leave the DOD shipment off the manifest.

If the only freight loaded on the truck is the DOD shipment, it is still recommended that the carrier create an "empty truck" ACE eManifest to notify CBP to expect the driver's arrival. See Creating an Empty ACE eManifest for instructions.

In both cases, the driver should verbally report the DOD shipment to the CBP officer upon arrival and present the paperwork for manual clearance of the goods. The carrier should also follow any specific instructions provided by the broker, shipper, government agency, or port of entry.

Duty-Free Treatment

Some U.S. government or military shipments may qualify for duty-free treatment under the Harmonized Tariff Schedule of the United States. Under 19 CFR 10.102, no invoice or shipper declaration is required for certain shipments that are expressly exempt from duty under HTSUS subheadings including 9808.00.30, but the importing government agency or office must present available invoice or bill information, or a pro forma invoice, with enough information for examination and duty-status determination.^[2]

For articles for military departments under HTSUS 9808.00.30, 19 CFR 10.102 requires a certificate executed by a duly authorized officer or official of the appropriate government agency or office.^[2] CBP states that the Center director will only admit articles free of duty under HTSUS 9808.00.30, 9808.00.40, or 9808.00.50 upon receipt of the required certificate, either at the port of entry or electronically.^[2]

Shipments claiming free entry under HTSUS 9808.00.30, 9808.00.40, or 9808.00.50 are released after only the examination necessary to identify them.^[2] Materials claimed duty-free under those provisions must be entered, or withdrawn from warehouse for consumption, in the name of the government department whose representative executes the certificate unless the Center director specifically authorizes an exemption.^[2]

American Goods Returned

Some DOD-related shipments may involve U.S.-origin goods returning to the United States. 19 CFR 10.103 covers documentation requirements for certain American products, or products previously exported from the United States, that are returned.^[3]

Whether a shipment qualifies under 19 CFR 10.102, 19 CFR 10.103, or another provision depends on the shipment documents, contract terms, government certification, and CBP instructions. Carriers should not assume that a shipment is exempt or duty-free unless the required paperwork and instructions have been provided.

Commercial Carrier Handling

A commercial carrier transporting a DOD shipment should confirm the paperwork before dispatching the driver. This may include the bill of lading, government documents, duty-free certificate, broker instructions, military shipping documents, or port-specific instructions.

The driver should know that the DOD shipment may need to be reported directly to the CBP officer rather than entered as a normal ACE shipment type. If the carrier has additional commercial freight on the truck, that freight should still be reported on the ACE eManifest using the appropriate shipment type.

BorderConnect Handling

In BorderConnect, a U.S. Department of Defense shipment is not selected from the normal ACE shipment type list. Do not create a standard ACE shipment for the DOD freight unless the broker, government agency, or CBP specifically instructs the carrier to report it under a particular shipment type.

If other freight is loaded with the DOD shipment, use BorderConnect ACE to create the ACE eManifest for the reportable commercial freight only. If the DOD shipment is the only freight on the truck, create an empty ACE eManifest in BorderConnect so CBP can see the truck, driver, equipment, port, and ETA information before arrival.

Driver Instructions

The driver should present the DOD shipment paperwork to CBP at the first U.S. port of arrival. The driver should be prepared to explain that the truck is carrying a Department of Defense shipment and that the DOD freight was not entered as a standard ACE shipment type in BorderConnect.

If CBP, the broker, or the government shipping office gives port-specific instructions, those instructions should take priority. The driver should not leave the port until CBP confirms the shipment can proceed.

Related Pages

Official Resources

References

[cbp-csms-dod-1] CBP CSMS #46189077 - Duty Free Certificate for Commercial Shipments under Subheading 9808.00.30

[cfr-10-102-2] 2.0 ^2.1 ^2.2 ^2.3 ^2.4 19 CFR 10.102 - Duty-free entries

[cfr-10-103-3] 19 CFR 10.103 - American goods returned

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